USAF estimated NAV

RNS Number : 7556I

Unite Group PLC

08 July 2013

 



PRESS RELEASE 8 July 2013

 

THE UNITE GROUP PLC

("UNITE", the "Group", or the "Company")

VALUATION OF

THE UNITE UK STUDENT ACCOMMODATION FUND

AS AT 30 JUNE 2013
Strong reservations performance continues to underpin

NAV and rental growth prospects

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund", "USAF") as at 30 June 2013.

The NAV as at 30 June was £705.7m (£0.944 per unit), reflecting an increase of 2.6% per unit during the second quarter of 2013 (31 March 2013: £685.3m, £0.920 per unit).

The components of the movement in NAV were as follows:

Effect on NAV:	Q2 2013
Movement in property values	1.4%
Movement in swap values	1.0%
Increase in net cash	0.2%
Increase in NAV	2.6%
Increase in underlying gross property portfolio value	0.8%

In arriving at the value of the Fund, its property portfolio, which comprises 21,673 beds in 59 properties across 19 UK towns and cities, was independently valued at £1,327m.

The movement during the quarter represents a like-for-like increase of 0.8% (1.0% in the six months to 30 June) in the underlying value of the property portfolio, driven by quarterly rental growth. Valuation yields remained stable at an average of 6.68% (31 March 2013: 6.68%). As in previous years, further rental growth is expected to be achieved as reservations for the forthcoming 2013/14 academic year progress.

Reservations across USAF's properties for the academic year starting in September 2013 stand at 73% compared to 71% at the same point in 2012.

USAF recently completed a 10 year £405m refinancing to replace two loan facilities that were due to expire within the next twelve months. The new finance reduces the average annual interest cost from 4.9% to 3.9% and enhances the Fund's distribution yield.

Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:

"During the quarter, the portfolio has delivered continued rental growth, with further uplifts anticipated as the 2013/14 academic year lettings cycle completes. Lettings for the forthcoming academic year are progressing well with 73% of the portfolio reserved compared to 71% at the same time in 2012.

"We are delighted with the outcome of the new financing, which both extends the maturity profile of USAF's debt and reduces the average cost of finance.  This will flow through to an enhanced distribution yield for investors in the Fund."

* Estimated Net Asset Value represents the capital position of the Fund and does not include undistributed income.

ENDS

For further information, please contact:

The UNITE Group plc Joe Lister, Chief Financial Officer Sophie Joyce, Head of Communications	Tel: [phone]
FTI Consulting Stephanie Highett Dido Laurimore Faye Walters	Tel: [phone]

About The UNITE Group 

UNITE is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.       Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.3% share. UNITE also manages a number of Joint Venture partnerships.

2.       Professional property management: UNITE is home to 42,000 students in over 120 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.

UNITE works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In May 2013 UNITE was awarded Student Accommodation Provider of the Year at Property Week's RESI Awards. UNITE has also been recognised by the Global Real Estate Sustainability Benchmark (GRESB) as a regional sector leader for sustainability.

Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk or www.unite-students.com   

 

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